S.F. 321 Section 1. Section 275.5, Code 2017, is amended to read as 1 follows: 2 275.5 Proposals for merger or consolidation. 3 A proposal for merger, consolidation, or boundary change of 4 local school districts shall first be submitted to the area 5 education agency board following the procedure prescribed in 6 this chapter . Following receipt of a petition pursuant to 7 section 275.11A or section 275.12 , the area education agency 8 board shall review its plans and determine whether the petition 9 complies with the plans which had been adopted by the board. 10 If the petition does not comply with the plans which had been 11 adopted by the board, the board shall conduct further surveys 12 pursuant to section 275.4 prior to the date set for the hearing 13 upon the petition. If further surveys have been conducted by 14 the board, the board shall present the results of the further 15 surveys at the hearing upon the petition. 16 Sec. 2. Section 275.11, Code 2017, is amended to read as 17 follows: 18 275.11 Proposals involving two or more districts. 19 1. Subject to the approval of the area education agency 20 board, contiguous or marginally adjacent territory located 21 in two or more school districts may be united into a single 22 district in the manner provided in sections 275.12 to 275.22 . 23 2. Subject to the approval of the area education agency 24 board, a portion of a school district may be severed and 25 attached to a different school district that contains 26 territory contiguous or marginally adjacent to the portion 27 of the territory to be attached in the manner provided in 28 section 275.11A, and sections 275.13 through 275.22 insofar 29 as applicable and appropriate to a petition filed pursuant to 30 section 275.11A. 31 Sec. 3. NEW SECTION . 275.11A Petition for severance and 32 attachment —— election. 33 1. Eligible electors of a school district may petition for 34 a boundary change that requests the severance of a portion 35 -1- LSB 1345XS (4) 87 kh/sc 1/ 5

S.F. 321 of the school district’s territory and attachment of such 1 portion to an existing contiguous or marginally adjacent school 2 district. The petition shall be filed with the area education 3 agency administrator in the school district where the territory 4 is located. Notice of the filing, including a copy of the 5 petition, shall be served upon the boards of directors of the 6 school districts affected by the proposed boundary change. 7 2. a. The petition must be signed by eligible electors 8 residing in the school district that contains the territory 9 that is to be severed equal in number to at least twenty 10 percent of the number of registered voters in the school 11 district, or four hundred eligible electors, whichever is the 12 smaller number. 13 b. The petition shall describe the proposed boundary change, 14 accurately describing the area included by legal descriptions, 15 of the affected school districts, which boundaries or area 16 described shall conform to plans developed or the petition 17 shall request change of the plan, shall be filed with the area 18 education agency administrator of the area education agency in 19 which the greatest number of registered voters reside. 20 c. The area education agency administrator shall not 21 accept a petition if any of the school districts affected 22 have approved the issuance of general obligation bonds at 23 an election pursuant to section 296.6 during the preceding 24 six-month period. 25 3. The area education agency board, in reviewing a petition 26 as provided in this section, may change or amend the proposal 27 in any manner. The review conducted by the area education 28 agency, including any resulting change to the proposal, shall 29 ensure that the estimated revenue under section 423F.2 of 30 the district where the territory to be severed is located 31 is sufficient for the payment of principal and interest on 32 the outstanding bonds required to be paid in the budget year 33 following the severance. 34 Sec. 4. Section 275.13, Code 2017, is amended to read as 35 -2- LSB 1345XS (4) 87 kh/sc 2/ 5

S.F. 321 follows: 1 275.13 Affidavit —— presumption. 2 Such A petition filed under section 275.11A or section 3 275.12 shall be accompanied by an affidavit showing the 4 number of registered voters living in each affected district 5 or portion thereof described in the petition and signed by a 6 registered voter residing in the territory, and if parts of the 7 territory described in the petition are situated in different 8 area education agencies, the affidavit shall show separately as 9 to each agency, the number of registered voters in the part of 10 the agency included in the territory described. The affidavit 11 shall be taken as true unless objections to it are filed on 12 or before the time fixed for filing objections as provided in 13 section 275.14 hereof . 14 Sec. 5. Section 275.20, Code 2017, is amended to read as 15 follows: 16 275.20 Separate vote in existing districts. 17 1. The voters shall vote separately in each existing school 18 district affected and voters residing in the entire existing 19 district are eligible to vote upon the proposition to create 20 a new school corporation and on any additional provision 21 authorized pursuant to section 275.12, subsection 6 . If a 22 the proposition receives a majority of the votes cast in each 23 of at least seventy-five percent of the districts, and also 24 a majority of the total number of votes cast in all of the 25 districts, the proposition is carried. 26 2. Notwithstanding subsection 1, if the proposition 27 is a boundary change as described in section 275.11A, the 28 registered voters residing in the entire existing district to 29 which the territory will be attached are eligible to vote on 30 the proposition, and the registered voters residing in the 31 territory that is to be severed are eligible to vote on the 32 proposition. If the proposition receives a majority of the 33 votes cast in the existing district to which the territory will 34 be attached and a majority of the votes cast in the territory 35 -3- LSB 1345XS (4) 87 kh/sc 3/ 5

S.F. 321 that is to be severed, the proposition is carried. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill modifies Code chapter 275, which provides for the 5 reorganization of school districts, to specify that a boundary 6 change may be petitioned for and caused by the severance 7 of territory from a school district and the attachment of 8 the territory to a different school district that contains 9 territory contiguous or marginally adjacent to the portion that 10 is proposed to be attached, and by specifying procedures. A 11 petition signed by eligible electors of the school district 12 where the territory to be severed is located may be filed with 13 the area education agency (AEA). 14 The number of eligible electors signing the petition must 15 be equal in number to 20 percent of the number of registered 16 voters in the school district or 400 eligible electors, 17 whichever is the smaller number. The bill provides that 18 notice of the filing, including a copy of the petition, must 19 be served upon the boards of directors of the affected school 20 districts. The procedures relating to filing a petition for 21 boundary change, filing objections, holding hearings and a 22 special election, and separate voting in the existing districts 23 or territories, must be followed in the manner provided in 24 Code sections 275.13 through 275.22, insofar as applicable and 25 appropriate to a petition filed pursuant to the bill. 26 As provided in current law, the AEA administrator shall 27 not accept a petition if any of the school districts affected 28 have approved the issuance of general obligation bonds at an 29 election during the preceding six-month period. 30 The AEA board shall review the proposal, including the 31 impact on school infrastructure funding for the school district 32 where the territory to be severed is located, and may change or 33 amend the proposal in any manner. 34 If the petition is approved by the AEA, an election shall 35 -4- LSB 1345XS (4) 87 kh/sc 4/ 5

S.F. 321 be held on the proposition and only the registered voters in 1 the territory to be severed and the registered voters of the 2 existing district to which the territory will be attached 3 are eligible to vote on the proposition. If the proposition 4 receives a majority of the votes in the existing district and a 5 majority of votes in the territory that is to be severed, the 6 proposition is carried. 7 -5- LSB 1345XS (4) 87 kh/sc 5/ 5